Campaigners battling controversial plans to build luxury flats on parkland have lost their fight at the Court of Appeal.

Crystal Palace Community Association (CPCA) had hoped to halt the £67.5m redevelopment of Crystal Palace Park, which will see 180 flats constructed on metropolitan green land.

It argued the Crystal Palace Park Masterplan was in breach of planning and expressed concerns the flats could have and adverse impact on local wildlife.

CPCA also warned the allowing residential property to be built on parkland could set a dangerous precedent for the UK's green spaces.

But judges at the Court of Appeal rejected their case and gave the go-ahead for the flats to be built.

John Payne, the CPCA chairmain, said: "The appeal was refused and we are now taking legal advice and considering our options.

"It is a sad day for our parks because this really is the green light and I'm sure developers will have taken note of this judgement and will be looking to build on our parks in the future, knowing that it will be very much easier to do so.

"I think this is only the start, and that's one of the reasons we took it so seriously. It is not just about Crystal Palace Park, but the country-wide implications."

It is the latest defeat in campaigners' long battle to halt the flats' construction, which they say could hamper the local economy as well as threatening the park's bat population.

The plans were approved by Eric Pickles, Secretary of State for Communities and Local Government, in 2010, with the High Court rejecting campaigners' protests in 2012.

But in a hearing at the Royal Courts of Justice in November, judges found merit in the CPCA's claims that the masterplan was in breach of planning law and gave them permission to fight their case in the Court of Appeal.

The only options available to campaigners now would be to take their case to the Supreme Court or the European Court of Human Rights.